but winning the stanley cup. it's friday, june 8, 2018. "squawk box" starts right now. ♪ i'm invincible unbreakable ♪ live from new york, where business never sleeps this is "squawk box. >> good morning, everybody welcome to squawk box. we're live from the nasdaq market site in times square. i'm becky quick along with joe and andrew let's look at the equity futures. you're going get a quick look and see that there are red arrows across the board. dow futures down by 119. the dow was up yesterday close to 100 point not the case for the s&p or nasdaq tech stocks leading the way lowther time around. nasdaq down 54 yesterday now indicated down at 60 points. let look at what happened overnight in asia.

you'll see that the nikkei closed down lower. down by a half a percentage poing. the hang seng down by 1.75%. and the shanghai composite look at what's happening in europe this morning. getting ready for the g7 meeting today. germany is the biggest declinder the dax down 1.1%. the yield on the ten-year at 2.977% the ten-year note is yielding 2.909% facebook this morning disclosing yet another major privacy gaffe. a bug made some private posts public for as many as 14 million users over several day happened in may. it has since been fixed the bug suggests users make new posts public even if they restricted

previous items to just friends they say the bug didn't affect past posts they're notifying users that were affected when that bug was live to review the settings. >> i think it was1 d1 days in m. i first saw it, i thought, would you be posting things to a grouch friends that you wouldn't want everybody to see? probably, i wouldn't but there are younger kids who might actually be in a situation where they think they're in a private conversation with three or four friends. >> and it got out. it's not good. a true technological bug >> it looks like a new fix on the whole thing and it wiped out your old settings on these things >> and then tried to default you the other way. >> it's part of the complications just trying to figure out how to set the settings up. it's been very complex maybe they can make it easier.

meanwhile, china's ant financial, we talk about ant helping all the little -- what >> go ahead and read it. >> joe's jaw was dropping because they're raising a jaw-dropping -- go to joe here thank you. a $14 billion. jaw-dropping $14 billion >> they have to change the name. gi-ant i like the term. jaw-dropping >> is that a bad thing andrew eat on the air all the time and looks -- >> doughnuts only. >> but eating is not -- most people say not to do that. i just dropped my jaw. are you okay >> better than dropping trou >> you were reading it dramatically >> i was trying to capture the

jaw-dropping the financial times saying that that price tag puts the private market valuation at a jaw-dropping $150 billion. >> wow >> ant financial operates ali pay. one of the world's biggest payment platforms. you can now use ali pay in tax sis in new york city >> who still uses taxis? >> because everybody is on uber, you mean i use tax sis all the time >> he looks sad. >> i canceled it two ubers, because the cab got there first. >> that's why you got a bad rating >> your rating only matters when you're in the car. >> so you're just a jerk in the car. >> you should have said, no, that is why. >> i thought your kid threw up in the car >> my kid threw up in the car. do you know day can rate you if

you put a seat belt on or not? they can ding you a star for a seat belt. >> so you don't wear seat belts either >> if it's a quick ride in the city maybe in the back, i should be sometimes i don't. >> okay, um, president trump will meet with the targets of his jaw-dropping funny -- okay of his jaw-dropping steel and aluminum tariffs the g7 summit in canada. with the teleprompter in today's world, you had to type it. separate the sheets. now -- >> back in the 1960s >> when i was walking to work both ways. kayla tausche joins us from quebec city to talk about -- there it is. i hear canada. think how when was the last time a canadian team won the stanley cup? that's the first thing i think of when was the last time kayla, do you know

i mean, i don't think they're thinking about the g7 at all >> i don't proe fess to be a hockey fan or an expert. i join the ranks of the capps fans of being excited for the first franchise stanley cup win last night >> i'm even excited. they had a lot of disappointments. it's also great for las vegas. you put a team in there, and the very first year, yi mean, they probably have a serious fan base we didregress. what is happening there? >> perhaps there will be discussion of hockey really, it will be about trade lots of twitter barbs being traded between the leaders of the g7, who normally are very friendly and very -- very much on the same page at summits like this but president trump, last night, tweeted calling justin trudeau

of canada indignant after he and the french president, e man cru -- emmanuel macron took turns talking about the breakdown in communications you have the trade minister planning to meet with everyone but trump. and angela merkel, who said earlier this week that there can't be any papering over the divisions that exist with the u.s. let's be clear divisions have existed before. last year, they does agreed on climate change right before president trump withdrew from the paris accord he did sign on to the joint pledge to fight protectionism and abide by an international rules-based trading system there are questions this year over where trump will sign the pledge or countries will go on without him. macron said the american president can be isolated if he

wants to neither do we mind signing a six-country agreement. trump responded by tweet saying to tell trudeau and macron that their barriers are unfair. he says he looks forward to seeing both of those leaders today. there will be bilateral meetings lots of grievances will be aired. it will be a short trip for the president. he's staying 24 hours. leaving early in order to make to it singapore and before some of those final closing comments at the summit will get made. joe? >> okay, kayla it's funny with people, isn't it it's all about trade, but all i'm getting on twitter is hockey stuff. and -- e-mails and everything else it was 25 years. if you can believe that. the canadians, montreal, in 1993 even the rangers have won a stanley cup since the last time a canadian team won.

so, um -- >> so has carolina tampa bay. detro detroit. colorado the devils dallas >> they used to win all the time you know what this is, this news, kayla, about these canadian teams, it's jaw-dropping again. isn't it >> i have to say, canada's weather perhaps gives them an edge in the on hockey department i grew up in atlanta we had ice skating rinks that we couldn't keep frozen during the winter for the seasonal hockey teams to practice. so it's only natural that they would have an edge on the u.s. >> i don't get it. something is not right here. >> i'm not going there never mind >> okay. don't go there kayla, thank you thanks for that. we have a lot of people on today. a guy from the national retail federation hei heidi heitcamp

mcconnell should let them vote on this and get some of the democrats to vote no on this legislation. it would allow congress to control tariffs. that's all -- the journal. man, the journal is pro free trade. they want congress to fully pass this thing to rein in the trade powers that they say the executive branch has now overstepped. maybe it has because this is kind of a -- >> it depends on if you tlihink there is a real emergency. you want the president to operate on kays of emergency is this an emergency >> i was racking my brain to think of everything wilbur said yesterday. by the end of wilbur, partly, because of the way he talks. >> soothing. >> soothing, soothing. almost hypnotic. he's very good made a lot of -- he's very compelling andrew, didn't he convince you

yesterday not to worry >> very convinced. >> they don't think this takes things far enough for zte. >> you're getting sleepily you're getting sleepy? >> why >> because you're listening to -- >> nothing is sleepy today did you hear that? ant financial, jaw-dropping ♪ joining us now hat are you doing? any way. we never know. joining us now matt jay, ceo of the national retail federation we got music ready >> wow >> let's go, caps. >> you were ready to go. i told you -- >> let's go caps >> i've been saying it's a big story. i have we want to talk trade. but -- >> i'll take the hat off hat's off to the cap i see becky and kayla rocking the red today. congratulations, washington tap calls.

stanley cup winners in a jaw-dropping stanley cup ♪ i knew i would get the music thank you for the music the. >> i, some of the -- the enemy of my enemy. certain fans of the caps that i don't want great things to happen for in a competitive way but, i am happy for them think that's good for them good for the city. long time coming for the caps. as we pointed out, 25 year since canada won any way. >> i figured that would be when andrew would jump in and say it's because of global warming that the canadians are not playing good hockey anymore. >> that's where i was going to go i almost said that thank you, matt. >> somehow it is causing much colder weather in d.c. all because of, yeah okay that makes a lot of sense. so, you're mad you don't like this. you say, i mean, you go as far to saying, matt, that we have added 2 million job. this could subtract 2.6 million.

i don't think it's that schism it would also mean if we did the auto tariffs you're talking in total, right >> ycumulative yes. >> wilbur ross minimized the real losses in jobs. i don't know if that's because he thinks they don't all get instituted or don't last he would disagree that we could lose 2.6 million jobs. >> we're looking at the way this escalates. we have been talking about that all along. now you're starting to see it. you see senator corker and a very bipartisan group in the senate putting forth that legislation. are there good chances that is going to go forward. it's an open question. it expresses the sentiment kevin brady. jeb hensarling saying the same thing. our trade policies ought to hit

the right target it's china not american consumers everything the administration did last year. the great work of congress last year was focused on one thing. one, helping american consumers. and two creating certainty for the business community this trade policy, if there is one, is directly ant th lly anto that it's inconsistent with the great progress we made last year i was with a bunch of ceos this week, cane restaurant. some nrf ceos. they're saying the tax reform bill has been a great boost in the arm. they're investing in their business, their people they're expanding. we'll erase it all with a potential trade war of the tariffs. it makes no sense to go down the road when we have all the momentum >> there's two ways of looking at it. you can't do it in a -- an average economy. some people would say when

you've got wiggle room because of much better gdp growth, maybe that's the time you address some of the long standing inequities that everyone sort of admits when the president tweets and he's very specific about certain tariffs. when he's talking about macron in france or trudeau in canada those numbers aren't false, are they >> i was thinking this morning right now, because of what you're talking about, this strong economy, we have the luxury of being able to do something like this. if there's something else that happens where we need our allies from a defense perspective, i wonder if they changes our opinion quickly. >> we're going take care of meeting them with the defense by making piece with north korea, too. so we got it all sort of -- >> a big week ahead. >> that's the at&t date, too >> time warner you've got that.

>> you've heard what time we're going to be here, right? >> we'll be hire live at 5:00 a.m. on tuesday. >> can i suggesting is use that 5:00 a.m. wakeup. maybe when you get up, you can make it by five of 6:00. if you can make it at 5:00 for one day. >> you have the tease next week. 4:45 >> good for you. >> i love being here so much that -- i may just stay here >> sleeping bag out. >> i might get my sleeping bag matt, you got a lot of senators on your side and it's bipartisan. and some of them actually are running for re-election. they're not all jeff flake he still assigns himself to these. he might run for president, too. i don't know if you heard that we got that going for us but you have corker. he's not coming back either.

you have toomey, heitcamp. mcconnell won't introduce it but might put it on another bill are you hanging your hat on the legislation? >> think this is more an expression of concern. it is certainly true we have seen this from the beginning. this is an unconventional and in many ways a disruptive administration if this turns out to be a fabulous negotiating tactic and we knock tariffs down, that's great. in the meantime, you'll see prices creep up for consumers. all the sourcing and supply chain issues that go with this that is our concern. that it escalates and gets out of control we don't want to see the

rhetoric outrun reality in terms of what is appropriate when we have a hot economy and things are firing on every cylinder our members are telling us in large part how strong consumers are feeling. how well business is going there is no point in snatching defeat from the jaws of victory. >> you look like mark messier. >> i'm happy to be me, but he was great player, for sure >> what if we set ratings records on tuesday on tuesday at 5:00 a.m.? >> a daily think >> four hours? 5:00 a.m. every day? >> eight hours for us. >> if we had to be here by 5:00, what would you do? what about the dirns with the elitists every night >> it would be challenging >> you would have to cut back. >> no, i would gate sleeping bag. come here and sleep here at

night. there's no way the people you hang out with will eat at 6:00 they're 8:30 types >> we're more of the early bird special types. >> yes, we are at olive garden. >> i want to introduce somebody who will be with us. michelle >> another reason. >> a big show on tuesday big news in the meantime, argentina and the imf reached an agreement argentina approached the imf last month in the midst of a massive currency crisis. michelle has the details >> thank you very much they announced this around 7:00 p.m. last night. they secured a line of credit from the imf over 36 months, 50 billion they're hoping that the rest is precautionary. the government was forced to go to the imf because they were in

the midst of the massive currency crisis. the year-to-date chart shows you earlier this year, $1 would by you 18 argentine pesos can we get that chart? it forced the central bank to 40% to stem the outflow of money from the country you're begging the investors to keep your money here we'll pay you so much money. >> jaw-dropping. >> hat is worth considering versus the german boond, right >> knowing you're taking on risk from argentina macri, the new president of argentina. after pussyfooting around got some religion and has agreed they're going to have to cut spending and give more

independence to the central bank not that many of our viewers are invested in argentina. so why do we bring it up it's in the emerging markets argentina is the tip of the iceberg. when the dollar and u.s. interest rates go up, most often, emerging markets go down. it's very intuitive. if you can get more and more ou of the united states the u.s. will pay you 3% you say to other countries with weaker economies, you have to pay me more. hence why argentina had to go to h 40%. the other issue is, a lot of them worked in dollars pa they have to pay off the u.s. dollar debt. two countries vulnerable that we're watching brazil and also, turkey

the brazilian real you'll see a similar move. not quite as stark in overnight as it was with argentina they're having political issues there. they're leading the markets to believe they're not doing what they need to do in terms of the economy. a lot of people are invested in the brazilian etf. the stock is getting hit you're losing on the currency front. so that thing is down more than 18% year to date you're getting pummeled. and then the turkish lira. they have all kinds of political issues borrowing issues et cetera, et cetera we wait to see what happens there. that is a meaningful economy if you had a crisis there, i think we would start to talk about bigger issues. it could spill over to the u.s. markets. >> you make a good point about the countries that have to borrow in dollars. they borrow in dollars their currency gets devalued

are fewer countries trying to borrow if dollars or are you stuck doing it because no investor will let you borrow if your country's currency? >> it's slowed down. the major central banks of the world have tear feet on the pedal. a lot of countries gorged. argentina borrowed money over a -- they issued a 100-year bond okay investors will look back on that and think, what were we thinking argentina isdefaulter the imf is as hated in argentina as it is in greece this will be a challenge >> i want to see the chart again. if we could see it again because -- i can't believe we haven't had music.

i can't believe we haven't had music. that is jaw-dropping >> that is jaw-dropping. yet, it is ♪ >> until you -- did you hear the music? we brought that up with you the first time, didn't you say $15 billion? >> the first traunch >> only the first traunch. which is jaw-dropping. ♪ >> some guests are worth that much to becky's point, we talked about doing a 100-year bond in the country. if you're the borrower, it's the smartest thing to do >> this was talk about it at the time >> you set up your payments. >> thank you, michelle >> see you later, alligators i should say -- >> you're headed to the airport. you'll be back by tuesday? >> no, no, no. >> you'll be live in singapore >> starting monday >> and she gets to wake up later. >> it's not really 5:00 a.m. for

all of us. >> no, but i'll probably be up for 48 hours straight. >> what is the time change >> 12 hours. >> a 12-hour -- that is -- that is -- jaw-dropping ♪ >> it's 6:00 a.m. here it's 6:00 p.m. there >> easy to remember. >> that's weird. >> it's a different day? >> there used to be direct support. it starts in october >> the longest flight in the world. returning to the air >> boy, we're easily amused. >> we'll see you on monday and tuesday. when we come back, we'll talk about what happened yesterday in a quack box exclusive interview. wairn buffett and jamie dimon talking about the end of quarterly reports. and parse all of that short-term guidance we'll get their reaction to what buffett and dimon said next.

let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade.

the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. there's no question in my mind that america will be far ahead. >> this number is the lowest it's been in 40, 50 years. sometime later this year, it will be the lowest ever. it's easy to change the

all right, everybody welcome back time for the executive edge. yesterday, in a squawk box

exclusive, warren buffett and jamie dimon made the statement against corporate guidance >> we have been pushing for it it's good to give people an umbrella >> warren, this is something you have been preaching about for a long time. what's an example of where you have seen it go wrong? >> when companies get where they're sort of living by so-called making the numbers, they do a lot of -- things that really are counter to the long-term interests of the business and i have never seen a company whose performance has been improved by having some forecast out there by the ceo that we're going to earn x. because the -- it's sending -- not only sending the wrong message and delivering the wrong results to the country and the company. it's teaching the people that work under him or her that -- that quarterly performance is

the end -- the end game. >> joining us now, two analysts who rely on short term guidance. mart ty moseby and brian neagle. brian, if companies stop giving quarterly guidance, what will that mean for you in terms of trying to figure out how these companies are doing? >> i thought the segment yesterday was interesting. in principle, i agree with mr. dimon and mr. buffett. in the idea that a lot of companies are more short-term focused. i don't think eliminating or encouraging the elimination of quarterly guidance is the answer i cover 22 companies 17 of which already don't give quarterly guidance the better message to the companies is to do beater job articulating to your investments

that we're making long-term investments. my concern would be. i'm interested to see what my colleague says if we go to less and lez quarterly guidance, that will lead to much more volatility in the stocks >> translate to less information coming from the company, less transparency >> correct that's correct again, it's -- i hear what they're saying that you don't want a company limiting long-term investments to make the numbers. >> right >> but even without guidance, there are still quarterly expectations for all my cankane companies, ie quarterly earnings estimates my competitors have estimates out there. the companies are still managing toward those >> i have seen ceos talking about investments near term. they tell you exactly what they're going spend.

as a result, affect what you used to think you would earn remember mike jackson. he told us what he was doing it was going mean a couple of -- >> then i also think of walmart. >> when they did it. >> they said, we're going make investments, pay the employees more the street took the stock down >> they don't feel like going through the motions of explaining everything. so they don't want to say anything it's not good for the shareholders >> i agree >> this is the real question look at companies that provide no guidance. how volatile or not their stocks are. >> you have three in your v universe >> yes >> how do those match up with the 17 giving you guidance >> and how is their performance. >> marty, i'm sorry. we'll get you in in a moment >> is that a different group of people the base of the stock market

is it a different mix? >> one company i have that gives no guidance is costco. that stock has done well there have been quarters they'll have quirks in the numbers here and there that trips the market up. that's more rare but overall, the stock's doing well a company like home depot. a perfect example. they don't give quarterly guidance but they give longer term guidance when they articulate it one or two years, they're talking about the investments they're making they're preparing investors for the impact of the investments in their quarterly results. >> marty, what do you think about all of this? >> i come from the perspective that for 20 years i was on the management side and running a company. and having to go through that quarterly treadmill of meeting estimates and talking about it the last ten years, i have been on the sell side i've been on both pieces i think at the end, it's more

counterproductive than it's productive what it takes -- >> to be giving quarterly guidance, you mean >> yes to be giving quarterly guidance. it's setting a benchmark that has nothing to do with the performance of management or if company. think about when we release earnings we're sitting there on the desk. we're seeing the earnings come across the tape. it's right off the bat what has adversed the estimates? it's not about how fast is the company growing? are they accelerating? are they decelerating? those matter more than i've five cents better, i'm five cents worse. let's parse this out we have to look at long term trends on the sell side i'm not forecasting against other sell side research analysts i'm forecasting against the cfos they're giving the quarterly number i have to be better than the cfo who has all the inside

information. right. one last thing is, the only thing we're left to do is look at trends or catalysts that will push the numbers higher and the biases for the cfo to be conservatives. the numbers will be lower. it's no surprise that we come out with a positive surprise the company will do better than they said in the first place >> marty, in your realm with the financials with the banks, jamie dimon said, in a situation for a bank, he just has to call up and say, create a bunch of swaps that could key yat revenue out of nothing >> you can do that you'll be layering on earnings you have to grow off of the next quarter and the next quarter if i add two pen anies this quarter. i have to grow that 10%. it has to be 2 1/2 pennies you keep pushing the curve down until it breakses.

we were just -- here recently, at one of our banks. m & t, managing for the long run. great job. their well-represented chairman was asked over and over again, how did you do this? how did you create the this long term track record? he said, i don't care what the quarterly estimates are. i manage the company for the next two and three years i'm always looking out and looking at what is best for the shareholder. it's hard. certain periods of time, you're not the top pick it's more difficult than you think to kind of go through it and look at the long term. >> stay the course marty, thank you brian, thank you >> thank you >> good to see you both. >> thank you when we return, president trump meeting with world leaders in canada. trade is sure to be a big hot topic. and the summit 'lget the buzz from the

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♪ it's hard to say what it is i see in you ♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. welcome back to "squawk box. president trump heading to canada putting him in the same room as allies that are a bit frustrated over new u.s. tariffs. the canadian trip ahead of what could be the biggest week of his

presidency joining us right now, jim vandehei we're going to talk, top of the -- a big headline this morning, michael wolf's new sequel jim. you excited for that sequel book >> his first one was a hoot. the parts that were accurate were interesting the other part was controversial. it's interesting how few books about trump are coming together. there were supposed to be a few big ones who knows if they'll come about. there was a big market for trump books despite the fact that every day feels like it's aired live on cnbc and everywhere else >> a lot of it is aired live on twitter. president nakron wrote that the american president might not mind being isolated.

neither do we mind sinning a six-country agreement, if need be trump pushing back what will it be like if the room this weekend >> it's already the words, the body language are extremely tense on both sides. is there a trade war there's multiple trade wars being fought simultaneously. most of them against u.s. allies president really is at war now with the europeans, led obviously by france in this case it's becoming very public. and it's complicating things, right? in the scheme of things, what i think happens in the void is you see china trying to step in. you can't get a deal with america because they're looking inward, do a deal with us. alliance we used to use to offset china is yearly fractured. i don't think it's broken forever. in the short term, it's undoubtedly fractured. the president will go in he has announced he'll leave early. he doesn't think he'll get a deal he knows he'll get a hostile

reception. he's making it clear he doesn't care he'll bolt out and go over and do the thing he's obsessed about. whether or not he can vistrike a deal with north korea. >> bring us inside the west wing we love you for the soap opera that is. explain. clearly, it feels to me, at least, that the navarro wing is winning at the moment and the mnuchin wing, he's now being painted as the globalist in all of this. >> you know better than anyone the drama inside around trade is real it's quite intense largely because like, the team that's winning one day is losing the next remember, days where gary kohn was in favor then the president wanted him out of the white house a week ago, mnuchin was the man. making trade deals happen.

forcing out the america first contingent now he's getting the boot because the president is siding with the navarros of the world it's the president that is winning. he's going with his impulse. he'll do what he wants to do on trade. unlike almost any politician that i can recall. he doesn't care what people think about him. he doesn't care if there's ill logic about the moves he's making this doesn't mean we'll be in trade wars and that they'll be irreconcilable but today we are >> do we know who will be the last person to whisper in his ear before the meeting in singapore begins >> there's though doubt. poem pay yo. bolton is valuable mattis whispering from the sideline those three that the president listens to the president said he's going with his own gut he doesn't want to get briefed

he wants to get a feel >> and rodman. >> always rodman >> thank you, jim. >> that's not really ridiculous. that's so interesting. coming up, the squawk ceo call we'll talk summer travel with the ceo of booking holdings, formerly known as priceline. it makes me think of shatner my idol. and kevin mccarthy joins us. and that is followed by democratic senator tiedty heitkamp stay tuned you're watching "squawk box" on cnbc real good. help me meet a clien. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals.

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welcome back check out share of apple this morning. japan's nikkei news service says apple's orders for phew iphone parts may fall 20% for the first half of 2018 compared to the same period last year. sources say apple is being extremely conservative the parts would be for new phones introduced later this year shares down about 2% when we come back, today is

world oceans day we'll talk to alexandra cousteau about her campaign to reduce the amount of plastic that get dumped into our oceans she'll join us after the break ♪ cake by the ocean ♪birds chirping

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today is world oceans day. carrying on a family protecting and restoring our waters, bring in alexandra cousteau, senior adviser of the nonprofit conservation group oceana. alexandra, thanks for joining us it is such an important thing we're talking about here and frightening, really. i want to ask an overall question what's more of a priority, the over-fishing, the lack of, sort of, giving back in terms of fishing, or is it the buildup of plastics in the ocean right now? and are they interrelated? is it somehow affecting the abundance of the ocean with this -- i'm sure it is -- with as much plastic that is building up at this point >> yeah. well, if you've seen the headlines says that by 2050 there may be more plastic in the oceans than fish, it's a simple

formula. it's that we're taking out too many fish from the ocean and pushing too much plastic in. so i would say that we have to solve both of those issues if we want to rebuild our oceans to a state of abundance. >> alexandra, long ago the tragedy of the commons was put forth and i think of timber. when someone owns timber land and they cut down the trees, a lot of times they replant trees because they own it and it's in their best interests nobody owns the oceans so we over-fish, and when we fish one area we just move to another area and fish more, and it's different countries and different territories. and how do you -- how do you do that globally when it's -- you know, you don't have an overall global law enforcement agency for something like that? >> well, there's a couple things we're doing at oceana. we did a lot of research, and we realized that about 90% of

fishing for worldwide is done by about 26 countries, plus the eu. so we are already actively working in a third of those countries to affect policy, to apply science-based quotas to fisheries, to expand protected areas and to reduce bicatch. we do those three things we know fisheries were come back and working with google to develop the global fishing watch, which allows us to track fishing vessels worldwide and look at their behavior the way they're moving through the water. we can figure out what they're doing. fishing in protected areas, fishing when they shouldn't be fishing and a lot of other things so we have tools available and we're quite -- we're quite optimistic while this san ambitious plan, we can accomplish it and it's never been more important, because our oceans are degraded and provide

sustenance and livelihoods for about 820 million people around the world. >> the plastics industry, alexandra, i look at the amount of oxygen taken out of the room by co2 and the notion of, you know, in the atmosphere, and i think about the amount of plastics going into the ocean and i wonder whether you get frustrated sometimes that so much is devoted out -- when i think -- i mean, what happens with plastic in our oceans, in our lifetime, is going to be just absolutely frightening, and i think it should get a lot more attention. anyway, we're out of time. >> it is. >> yeah. >> it should get -- >> i'm ready to jump up and down about it whether it's paper, renew -- some other way of doing it glass straws are something appreciate your time today and godspeed and good luck. >> thank you. and coming up when we return, our guest host for the next hour, tom fanning, chairman and ceo of southern company and

member of the atlanta fed board of directors he's here to talk about the economy, tax rorefm and so much more a big two hours ahead, right a big two hours ahead, right here on "squawk box. i'm making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital.

trade turmoil. president trump heads to canada today for a g7 summit. he'll meet with leaders from many of the countries he just hit with tariffs. attacking america. a top official from the department's homeland is how he is keeping cyber safe and how you can help. and the washington capitals winning the stanley cup for the first time ever. it's the second hour of "squawk box" facing off right now.

♪ i'm in love >> announcer: live from the beating heart of business, new york, this is "squawk box. welcome back to "squawk box" right here on c nbc. live at nasdaq market site in times square u.s. equity features at this hour what's going on quick. looking now at the dow looking like it's going up triple digits about 100 points off nasdaq off 62 points s&p off about 10.5 points and facebook says a software bug exposed posts meant to be private to the public. company now fixed the issue, which occurred between may 18th and may 27th and that it's notifying affected users also, in financials, raised about $14 billion, believed to be the largest fund-raising by a private company. china's biggest online platform. the alibaba spin-off about $150

billion. malaysia considering asking the justice department to get goldman sachs to return nearly $600 million in fees according to a reuters report. they earned the fees through bond sales for state-run one mdbp you might remember that fee afe -- fiasco an official request not made that all got tied up, if you remember, with leonardo dicaprio, financed and all sorts of shenanigans going on, but we have breaking news to bring you right now relating to verizon. a newceo this morning. >> hans vestberg succeeds lowell mcadam, who's 64 succeed him august 1, 2018 vestberg is 62 currently vice president and

technology officer mcadams said i strongly believe in the power of training to grow long-term growth and innovation. for verizon, the time for a change in leadership is now, and i'm confident that hans is the right person to bring verify rising through its next chapter. signberg is gone. >> been gone for quite some time. >> all right makes sense, then that they replaced him with this guy. >> and the company trying to make the point this represents a change in leadership, not a change in strategy shifting what they're doing, not really. >> yeah. >> and where does this leave tim armstrong? >> i don't know. is he -- you have to ask him. >> i saw tim yesterday for a second here for -- i don't know what that -- just a anecdote. anyway, in other corporate news, docusign beating the street in its first quarterly results since ipo in april stock up more than 50% since the ipo.

stitch fixes latest numbers bet than expected. added more subscribers to its online personal clothing line service. i need one of those. company also launches stitch fix kids a platform to shop for children. and shares of apple are under pressure now earlier we looked at a double, 1.5% now japan's nikkei news service says apple's orders for new iphone parts may fall compared to the same period of last year apple is being extremely conservative parts for new phones, to you introdu - to be introduced later in the year. and president trump will attend the g7 summit in canada today. kayla tausche joins us in new york city. >> reporter: good morning. ahead of the summit the president doubling down on trade positions that angered allies ahead of what is expected to be

an extremely heated set of meetings here on the ground after leaders have been trading barbs on twitter and in press conferences ahead of it. taking center stage, you can expect those u.s. tariffs on steel, aluminum and potentially even cars, but the president tweeting this morning he's looking forward to straightening out unfair trade deals with the g7 saying if it doesn't happen, the u.s. comes out even bet perp this is a group that sought to reach con sense ins amons despi' happens among the trump administration and the u.s. considered withdrawing from the paris climate accords, but the u.s. at that time and president trump did sign on to pledges to fight protectionism and to work to improve the world trade organization, but that is an international trading system that the president and the white house have recently soured on. >> i believe in the word

reciprocal you're going to charge five times, we're going do charge five times. >> the world trade organization which has actually been a disaster for us. >> the united states right now has a trade deficit with the european union of $151 billion >> that is the governing body of international trade that allies have been fighting back against the u.s. within. it will be interesting to see whether the u.s. reaffirms its commitment to the wto. there are a few areas of agreement we could see perhaps syria, perhaps economic growth globally, but trade is going to be a major, major portion of the discussion here, which will just be a short 24 hours for the president who arrives a little later this morning guys, back to you. >> kayla, that threat from mccrohm macron, sign a g communique and leave the united states out. what does that mean? big implications and would the

administration care? >> reporter: unprecedented, becky, but the administration doesn't seem fazed by the prospect of that happening they believe the world trading system has been unfair, and that what they have been doing on the economic front is what's needed to actually right size and level the playing fields so at least from an economic perspective it's not something expected to faze the president and his advisers have said on many different policy fronts that no one can afford to move forward without the u.s. so we'll see exactly what they decide to do later on this weekend. >> we'll just team up with the uk, maybe. you know >> for a while, france supplanted the uk as one of our strongest partners and seem to like it. we'll see. >> and a meeting with all six. the leaders. not with us this time around. >> but they -- they've been the object of the same type of threats from the eu, because of

all the remoaners still in is it ever really going to happen keeps getting watered down do best out of three, two out of three on this brexit vote. bankers have no vested interest in it, of course n anyone say anything about the capitals up there? kayla? at you're walking around no >> reporter: well, we have been walking around, joe, but we started our morning dark and early here today so people are just now trickling in a lot of people come here from wash, up late last night watching the game. >> oh, good. >> reporter: so admittedly, groggy fans who are going to be turning up a little later this morning. >> okay. all right, kayla thank you. in other global market news, the imf agreeing to a $50 billion deal to help argentina's economy. the terms of the deal include cutting the government's deficit by 2020 and bringing down

inflation to 17% by the year 2019 and then 9% by the year 2021 the peso under extreme pressure, as we saw earlier. get to our guest host this morning. tom fang southern company president and ceo and he's also on the board of the atlanta fed my favorite fed organization, because they're always hyping numbers -- anyway, i mention them very volatile. the numbers the atlanta fed comes up with. >> remember what that number is, right? it takes all of the economic data that regularly comes out and gives you an immediate snapshot what it is. it is not a projection it's not some long-term estimate just gives you the latest permutation of data. >> if the last one was 47 and it's june, this is the last month of the quarter har, has it changed since the last one

are are privy to that fact >> as a matter of fact, we just had a board meeting. atlanta traveled to kansas city and had a great chat with the federal reserve bank of kansas city about this and other issues one of the things we did talk about when we separated and did our own meeting was how people think about this atlanta data that we put out regularly. so we're thinking about how to position it perhaps to be more informative rather than just this snapshot of data. >> big thorn in liesman's side he's always -- >> you and i see it the right way, though, i think i think the potential of the united states economy is better than what a lot of people give it credit for. >> and are hoping for. hoping for lower -- >> we could do so much better. listen i don't know any reason we couldn't be three or better a lot of the old economists will say you can't do that. >> they say only this year because of the -- >> that's right. >> and then goes back. >> what are you seeing, though -- >> hang on one of the things to talk about -- andrew's going to talk

you out of it. >> no, no. >> really? >> mccarthy is coming on here. >> one of the things we can do with him, talk about the importance how tax reform brings oxygen into the recovery of the united states economy. i think we can do that. >> does trade cut off that oxygen >> that's the event risk we have to deal with so, you know, we'll work through those issues at least the fundamentals are there. >> put in the trade piece aside for a moment, obviously a critical piece. >> yes. >> in terms of your own business and what you're seeing in your role at the fed and everything else. >> right. >> what gives you confidence that even if we get to three plus this year, that there's a consistency to it for the future >> so it will be the other factors. right? so they're balancing right now -- the fed is balancing this idea of how much to tighten and what's interesting, and in the next vote -- so what does the street say it's 92% they're increase by 25

basis points >> right. >> the more important information, i think, will be the words around that. because i think what we're apre approaching is some range of moderation. >> meaning if they tell us, raising 25 basis points but slowing down because -- >> not necessarily of course, look, i'm not on the fed. right? but i wouldn't be surprised you see language that says something like we're approaching neutral something like that. >> sounds like -- interpreted, approaching neutral, i read that as, wow. we're putting on the brakesalities bit and the markets take off. >> i wouldn't go that far. neutral is a range. >> right. >> okay. so they can continue to expand or not i wouldn't view it as just a pellmalincrease we'll see on a doc chart of 2019. >> good stuff. leader mccarthy will be interesting to talk about, how we're breathing oxygen into that. >> still early. >> we have event risks going on around the world

right? >> right. >> we do have to worry about trade and have to worry about -- >> that's not new. >> yes. >> always event risks, but so we're in june of the first year of the tax reform. so i mean, we've seen -- write it was announced it was amazing how much initially a lot, you know -- almost instantaneous, a lot of companies announcing some things and we haven't heard much lately and it's going to be a slow, maybe a more sustained upward -- >> here's the thing. and i'm certainly not going to criticize any other company but a lot of the announcements we heard out of that was, in my opinion, a little bit of flash paper. christmas bonuses. things like that i get that, and that's important. in my industry, i'll talk about my company what we've been able to do in georgia alone, half of our regulated business in the southeast, we were able to deliver rate decreases amounting to $1.2 billion. >> that was in the journal yesterday or the day before.

utilities cutting rates, basically. >> think about the importance of that that's not flash paper that is a complete e reduction in a term nent sort of wpermane. recovery, unfortunate thing, top 30% of america gained more by the economy recovery than the other 70%. reducing rates actually acts as a reduction of a regressive tax. >> is it something that the homeowners and the consumers actually put through and think, hey, my bill went down for utilities and it's because of the tax bill, though >> whether they think it consciously or not, that's a -- >> it's an interesting story and really excellent point to make i don't know if it will pay off for republicans in november. >> they have to tell the story that's not my job, it's their job, but it's an important point. had you think about it, energy share of disposable household income is really important for those in the bottom 70%. if you can take that down, the first thing we've seen is it hasn'tchanged spending pattern

per se, which distresses the fed sometimes. they love to see more spending, but it improves the safety margin of the american economy. >> true. >> and i think if value is a function of risk and return, improving the safety margin is just as important as increasing spendi spending. >> we've got to go surprised you missed this, andrew. >> what happened. >> but, not for nothing, the -- >> well -- no, no, no. >> i'm feeling i must have missed something big. >> no, well, i think you did maybe you need to alert your friends over at cnn. you know the captain of the capitals team is, right? it's russia. >> alex ovechkin. >> it's a conspiracy >> jaw dropping. >> what you got from me. >> yeah. he's russian coincidence? you think? with all,ty mueller and trump and all that the captain of the winning -- who's going to hoist the cup >> a russian. >> no. a russian. a russian.

with trump as president. you think this is a coincidence, sorkin, really >> going to bring it back to putin? so he can walk around -- >> it's all possible i want you to start thinking about the implications that a russian is the captain of the stanley cup -- >> call gary beckman. >> gary beckman, gist acosta, your friend. washington capitals, in the -- makes it even more suspicious. more suspicious. more jaw dropping >> oh, boy my goodness. coming up, keeping america safe from joe -- no. keeping america safe from cyber attacks. we'll talk to a top official from the department of homeland security they've got to keep us safe from all of the russian hockey players. >> yeah, yeah. they're everywhere. >> later, the ceo of booking holdings on the travel economy, plus at 8:00 eastern, south dakota senator heidi heitkamp, doing a little -- joseph. >> that she's coming on?

>> what's here >> oh, yeah, yeah. you betcha she'll be here. she's good. >> thank you od real go. >> stay tuned. you're watching "squawk box" right here on cnbc without starting from scratch. it brings your business up to speed, doing more with systems you have in place. it can bring all your apps to life and run them within your data center. it is... the ibm cloud private. the cloud that's built for all your apps. ai ready. secure to the core. the ibm cloud is the cloud for smarter business.

welcome back, everybody. primary season is under way and cyber vulnerabilities are top of mind for many voters

joining us with more on securing the u.s. infrastructure is christopher krebbs, department of homeland security, seen year cyber security official and great to see you today, christopher. thank you for being here. >> good morning. >> let me ask you first, before we get into the election, just digging back through, thinking about the power grids, thinking about things, vulnerabilities, the u.s. just over a year ago accused russia of trying to infiltrate our power grid, our water, our aviation systems, and manufactures sectors whatever whatever became of that and how concerned should we be of this? >> a great example of partnerships we have with companies like southern and tom fanning. what we able to do is identify some activities russian actors had undertaken over the last year or so and then share information out with some of the critical infrastructure partners like electricity and southern company. our job, my job, at dhs is to focus generally on two things.

one, understanding really what the risk is. we talk a lot about, there's this vulnerability and that vulnerability and the russians are coming, the chinese are coming my job is contextualizing that risk and understanding what truly matters and asking the first question of, so what we see this vulnerability. what does it really meanened itmeanened-and it's drilling down to key services we need to focus resources on, the cyber front. working with tom closely on things like that report. the other element is, just cleaning up the general environment. really looking at what the issues are that affect the average american, and hopefully we can talk a lot about some of the things doing around ransom ware awareness. >> talk about the "so what" part of this. how concerned should we be >> so look, we as a nation increasingly connecting to the internet i'm not sure we're taking a

kreye kr really critical analysis what we're plugging in and why. i try to figure out what the really critical things -- thinking about andrew and the work you did with too big to fail looking for those seeds of disaster out there in the critical infrastructure community. handful of truly critical services as we're calling them national critical functions, if impacted would cause a pretty bad day, week or month for the american people. and then focusing resources there. now, it's not going to be everything it's going to be power it's going to be certain elements of the financial services sector. >> right. >> but not just eliminating the vulnerabilities or the threat. it's a introducing resilience into the system. >> are we making progress? because you think about things like power, water, the aviation system all of those industries, banking, you mentioned any one could cripple our economy. are we making progress. i think we're making progress in a number of areas and frankly i'm not the right person to ask. i'd ask folks like tom fanning

what is he debting from dhs, from the government, to make his job, his 85% of the critical infrastructure in the united states is owned by the private sector so i've got to provide tom capabilities to improve and address his risk. >> and they have been fabulous not a setup, no kidding. dhs has done a heck of a job secretary nielsen has done great. krebbs is a guy i keep with all the time and transcends not only cyber and physical national security issues, also storm restoration, harvey, those things they do a heck of a job. we're working on now a classic public/private partnership involving the what's and hows of national security. sharing information, understanding the threats. cyber is an area rife for continued progress one of the things we have to do, too, isunderstand consequence by likelihood. this threat matrix that chris and i work on so much, and really thinking about the

lifeline sectors as me mentihe , finance, telecom, electricity. bringing together the ceos to help advance those causes. >> tom our guest staying with us chris, thanks for joining us today. >> thank you. coming up, history-making sports moments on the ice and on the track. that's next. >> announcer: time now for today's aflac trivia question -- today's aflac trivia question -- wh datoes th not that kind of break. oooh! that had to hurt.e bld roundel of bmw represent not that kind of hurt. yeah, aflac paid us cash in just one day to help with our car payments and mortgage. aflac! perfect timing! see how aflac helps cover everyday expenses at aflac.com.

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okay good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq

market site in times square and among the stories front and center this morning a story that broke earlier this hour. dow component verizon is et gooding a new ceo. former ericsson ceo hans vestberg takes over on august 1st from mcadd many wam who wilo until the end of the year and become the non-executive chairman he joined about a year ago and is currently chief technology officer. also, starbucks ra s raised its prices that's up between 10 cents and 20 cents starbucks says store operating expenses rose 9% during the first half of its fiscal year. and household net worth for the united states passed $100 trillion for the first time according to new figures out from the federal reserve net worth was up 1% during this year's first quarter compared to the final three months of 2017 however, that increase was smaller than the prior quarter, because of a rocky first quarter for stocks

>> and i think we may have put this on the screen, but, yeah. just learning celebrity chef and award-winning celebrity chef anthony bourdain died at the age of 61 and the cause of death, suicide. found unresponsive in a hotel room in france this morning. he was the emmy-winning peabody award winning host of cnn's "parts unknown." kind of a shocking, can't help but think of kate spade. that was this week as well. >> it was. >> for all the public success people have, it makes you think about -- >> you never know. >> you never know. >> we're going to -- segue to -- topic of travel. relates to something that anthony spent much of his life doing, but in the meantime, airlines are forecasting the summer to be the busiest travel season ever and for more we want to bring in glenn fogel.

ceo of bookings holding. services include booking.com, priceline. you know all of these. kayak, i use religiously rental cars.com and open table another thing that i use all the time so tell us right now about the health of the consumer, vis-a-vis all of these services. you now have your tentacles in places that i think, i mean, pretty interesting in terms are your ability to take the pulse of where the consumer's at. >> and people are traveling and dining listened to how the economy is doing well and when people are feeling flush they want to go out and enjoy things today's millennials they don't want to buy things as much as experience things. that means going out and traveling the world. >> in terms of price point, though, are you seeing anything -- unique in that way >> nothing's really bulging up not seeing inflation recently reported some average daily rates come down a little around the world on average but

pretty steady right now but we're not seeing a lot of price inflation because of increased demand. >> in terms of competition for price in the airline world, always a debate we have on this set. better or worse? >> well, we have seen announcements that the expectation in the fall may be for higher prices and that would be more related to jet fuel, oil prices are up. jet fuel, significant amount of the cost for an airline and talked about raising prices at some point that being said, when you have low cost carriers coming into the space putting pressure on the legacy carriers it's a battle going back and forth and end of the day, empty seat on an airline is a terrible thing to waste and they want to make sure to fill up that seat >> glenn, are people spending more because they have more in their pockets potentially as a result of tax reform >> could very well be. i haven't looked at the numbers and can't really tie what the correlation is i just know that people want to travel, and that's what makes our business go. >> in terms of how you collect

consumers, is it off of search or people coming directly to you? what -- >> right. >> how does this happen? >> so we have historically been one of the biggest players and what's known as the performance advertising market that's google. we spend a lot of people with google getting people to come and talked about expanding our brand opportunities. spending money with you, tv ads, other ways to do it, because we have to make sure we can reach everybody. no doubt in the past we absolutely, main driver for customers has been people go to google and search and come to us we want to change and have them come direct. >> but how's that going in terms of, customer acquisition costs >> the fastest growing channel is the direct channel, we like to call it people know booking.com. come right to booking.com. growing fastest and the largest channel we have. we're happy about that. >> what's your breakdown and your ad budget google versus -- >> we don't break it down individually we show what's online versus

off-line and the online performance is a significantly higher number, but you look at the growth rate of our off-line advertise -- what we call brand advertising, that's growing, too. >> okay. so i have a very selfish question about getting upgraded. >> uh-huh. >> is there a way -- you know how hard it is to use your miles? >> yeah. can be. >> can be. and use your miles has anybody come up with a service including you, ever thought about trying to create a service you can actually, it all works seamlessly it's so impossible otherwise on multiple allianz. >> airlines. >> friction in travel. planning it, to the time you get to the place, it's horrible. the reason we're using technology to try and improve. for example, our company doing a test now book into that, which eck into that hotel far away using your phone. you don't need to be waiting in line that's a way to save another way that people are trying to save is ground transportation

everybody thinks, oh, just get an uber. around the world, uber may not be the way to go uber may not exist offering up to customers going to a specific location, showing right away, how do i get from the airport to the hotel what's the easiest way to do it? it's not just using frequent flier miles but using everything. >> final question. hotels you've seen this, charging cancellation fees a new -- used to be you could -- book and then get out of it. that change business for you at all? >> historically, always refundable rates and non-refundable rates. >> in the air world. no in the hotel wold. >> oh, absolutely. booking.com, our model, helped make us so successful so much of our inventory is completely refundable that said i agree there are places around the world some of the hotels are having high occupancy saying we're not offering up that refreundable cancellable rate we do it all ways. fact of the matter we bring in

to hotels. hotels filled up, all doing well. >> shatner -- gone, back >> we brought him back just a few weeks ago for our 20th anniversary. 20 years that priceline.com has been -- >> there's no amount of money that should be -- prohibitive from him being your permanent spokesperson. >> look, bill's been around a long time -- >> 87 years. >> exactly. >> and for certain generations who remember him. >> all generations all generations. >> and i understand where you're coming from. our pmillennials. >> i'm not a t.j. hooker person" >> we may want to talk to you about this. >> i don't want to do it that's how i know who he is. >> t.j. hooker dates you >> does that date me anyway -- bring -- i mean, seriously. he is a -- a miracle of nature

is he not? >> running around europe in an amazing race. >> doing a great job and helped us fantastically we love it. >> he has. give him more stock, too. >> good seeing you. >> thanks. when we come back, the wall agenda including trade and tariffs. house majority leader kevin mccarthy joins us live his take on the d.c. headlines that investors freed need to knw about this morning heading to break, look at futures. a strong week for the markets up until yesterday saw wobbles for the nasdaq you'll see this morning this again. dow down by less than 80 points. nasdaq down by about 52. s&p wn bdoy 8. stay tuned you are watching "squawk box" on cnbc

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welcome back, everybody. g7 members getting ready to confront president trump for the first time face-to-face over his trade agenda specifically tariffs on steel and aluminum joining us now to talk trade and much more house majority leader kevin mccarthy leader good to see you today.

>> thanks for having me back, becky. >> start with the sgchltg7 talks many allies upset about what's happened recently, threatening, macron, sign a communique from the g7 with only six of those members and exclude the united states that would be the first time that's ever happened how big of a deal is this and what do you think about it all >> well, i don't think they want to exclude the united states especially the size of our economy. i think what's happening is you have a trade discussion. remember what happens here if a car that's built in america goes to china, it gets a 25% tariff goes to the u, gets 10%. one of their cars comes to america just 2.5%. is there wine sitting on the shelves? canada no what about our dairy products? yes, there is room for a discussion it's hiltealthy to have a good discussion i'm glad the g7 is getting

together at this time and work out the differences of opinion. >> i agree on a lot of points, leader one thing i would say, seems at times were she a frenetic pace of what we decide is the most important thing we're talking about. when it comes to nafta, still talking about this sunset provision in five years and still talking about other things that i would think you may not be in favor of business leaders aren't in favor of at times, lay it out like that, look, 25% tariff versus nothing on ours or 2% on ours, that's clear. an easier negotiation tactic going at those things but you're suggesting all of these tariffs are negotiating ploys points >> negotiating points and good the g7 is getting together remember this, becky, on your show a year ago, the concern what was the tweet about north korea and what's happening next week north korea and america is sitting down together. so let's give them a little leeway to have a discussion. >> sure. >> always a part of

negotiations, sometimes you make an argument about one point to be stronger in another i'm going to give him an opportunity but am a firm believer nobody win as trade war. we all understand that g7 understands that and one thing about the g7, more united states us than divides us. like any family, end of the day, we will find a place to come together and remember what's happened in this meantime. we renegotiated the south korea trade agreement and it became a little fairer for america. >> sure. >> i believe it's possible and i do believe we're in the middle of that discussion it might feel uncomfortable like any discussion would be, but the airs of this will be healthy and a perfect time to have a g7. >> i agree with all those points and hope you're right. where we're headed you pointed out you know nobody wants a trade war. >> nobody. >> and trading partners know that does president trump know that >> i've sat with president trump. he understands that. larry cud loewkudlow understand

well the team around him. these are negotiations i want hem to have the negotiation, to get together and end of the day be able to have a more fair trade in the process as well. look, america and canada have been longtime allies our economies are built together at the same time we will find a place to get together and work through all of this >> hey, leader, tom fanning. great to see you. >> hi, tom. >> the tax reform, importance of it atlanta fed traveled to the kansas city fed. a long talk how this may be breeding oxygen to kind of this economic recovery. so much of a discourse is east coast/west coast and what do you tell people that may be at the wichita river festival tell them what tax reform is going to do for them >> well, the greatest difference, tom, you do a fantastic job and know it well, especially working on the ed the 1 millionth job has now been created since he passed tax

reform in perspective for andrew and becky. the last 49 years in the history of america unemployment has only been below 4% seven months seven months out of the last 49 years. and two of those seven months was april and may. that's the fundamental difference that we found from going after the deregulation, going after tax reform 48 out of 50 states now have lower electrical bills and one company, 1.2 million employees now have a longer maternity leave. this is helping to transform america. think of this. if you look at household wealth, we've just increased it by $7 trillion this is unbelievable if you sit back and look elements of this economy were have not seen in decades. >> leader, funny that you -- i guess preemping ipreaching to r with me. >> hi, joe. >> and young people -- >> no. so is it -- presumptuous to call

you speaker? still call you leader? multifaceted republicans have keep the house and two, have the votes to do that is that something? and then i have a question about tax reform >> very right. the first thing we have to do, keep the house history is against us. look at the economy and look at the direction we've been going, if the election was today republicans would be in the majority that's the whole focus of what we're basing on. get this economy moving. that's not even talking about what we've done with the v.a before we -- before this new administration, a g.i. bill, only 15 years to use it. now you've got a lifetime. right? look at what the transformation we made, bad employees released from the v.a. so good employees can improve. human trafficking. modern day slavery 70% of that all happens with 100,000 people on the internet we've stopped that

back pages shut down, being prosecuted. >> yesterday, speaker. >> yes. >> because dwoent haon't have t time someone said neither side wants to mention tax reform for the midterms is that true >> i don't know who's saying that i'll mention it every day of the week 1 million new jobs, tell me one democrat who voted for the million new jobs unemployment below 4% for only the seventh time since in 49 years? tell me one democrat that voted for tax reform to help that? >> and what else i'm hearing, trump is popular only with his base someone who's pretty smart told me today he'd more popular now with republicans than reagan was at any time during his entire presidency, during his entire eight years and more popular, obama was never this popular even with democrats at any time -- i don't -- >> let me put it in perspective. >> saying this or a poll is saying this? >> it was a poll by the person that -- >> let me put it in perspective.

since california just had their primary election, and this is a state that donald trump lost by 4 million votes, and a state senate seat in california's bigger than a congressional seat you know what happened in that primary election they recalled a democrat senator and elected republican ling-ling chang and why? over one issue what the democrats did was raising gasoline tax now that's going to be on the ballot in november you know what? i think he's more popular, but the policy are more popular. people want to have a job. unemployment claims at 44-year low. if you look at small business and they say is it a good time to expand? it is its highest number since the poll has been taken in '74 this is -- unbelievable economic time. >> don't forget the importance unwinding overreaching regulation you grew up running a small business. >> right, tom. it is the fundamental part of when we took the majority.

you have the congressional act allows us to go in, look at regulation and repeal it with a 51 votes in the senate only one done time in the history since the law has been in effect. we've done it 16 times it is transforming this economy and we're going to continue to do that and put us in a stronger position end of the day people will have a clear decision want the economy to continue to grow or fall back and actually increase taxes take the million jobs off the table. i don't think that's where america wants to go for the future. >> no one else is asking the question i will so the president and others have talked about the idea of impeachment more themselves recently and there's an argument to be made that they're doing this in a way to bolster the base what do you make of that >> i don't believe that, because andrew, go to the floor of the house, two times we've already had that vote on the floor to impeach the president and it wasn't a republican who brought it up. it was democrat.

it wasn't a republican who voted for it it was democrats so -- the democrats, the big donors, have actually funded millions of dollars to pressure democrats who are running for election to promise they'll impreach the president so i really believe there's a reason why someone might talk about it from the aspect that the democrats are proposing it that's the only reason you'd ever see a republican -- because they want to -- that's why they want to take control of government we know it we've watched it seen the votes happen. the only difference, fw they had the majority they'd pass it. >> prussirussians are going to the stanley cup, too. >> in all caps a good game and good series. >> with putin. with pictures of him -- he has met with putin, this ovechkin character. >> mueller will investigate limb tomorrow, i'm sure. >> what if he met with donald jr. at some time >> somebody went to a hockey game oh, my gosh! we have to have a new

investigation. >> andrew is triggered again if i had a dime for every trigger piece. it's so easy. >> pretend none of these things are real. >> guys, great to see you. coming up, when we return, this morning's stocks to watch. stay tuned you're watching "squawk box" here on cnbc -- only on cnbcto j this is a diamond you can follow from mine to finger, and trust it never fell into the wrong hands. ♪ ♪ this is a shipment transferred two hundred times, transparently tracked from port to port. this is the ibm blockchain, built for smarter business. built to run on the ibm cloud. anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest.

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xwshgsz welcome back to xwb. our guest, tom fanning, president and ceo, and -- you have an idea about resilience?

>> resilience is the hottest new word in the energy industry right now. we really do need to think about some of the elements of today's show when you had chris krebbs at dhs talk about cyber and physical security. >> right. >> when you think about the importance of transitioning this nation's generation fleet into something into the future, we've got to consider that we need diversity of fuel. we need a diversity of technology yesterday you had jamie dimon talk about kind of this idea of short-term versus long-term. the notion of resilience will, i think, underscore the notion of long-term planning, having fueled diversity having diversity of technologies, base load intermediate, peaking technologies and really driving forward and economic engine that is the best in the world. >> take that to the bank tom fanning, thank you, sir. >> great being with you guys. >> thank you. >> good seeing you. coming up, president trump

heading to canada for the g7 summit with a topic of trade front and the center ahead of that, talking to senator heidi heitkamp, giving congress the power to approve all security tariffs. stay tuned you're watching "squawk box" on cnbc ron! soh really? going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management.

trump and the world. the president tweeting a few warning shots to allies ahead of the g7 summit pap live report from canada straight ahead. new this morning verizon naming a new ceo the stock reaction coming up plus, big raise, big business ♪ we'll take you to the site of the belmont as the final hour of "squawk box" gallops on right now. ♪ live from the most powerful city in the world, new york. this is "squawk box. >> good morning, and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen along with becky quick and andrew ross sorkin a check on the markets

quickly futures are down after having four days of so pretty good and nasdaq leading the way and the nasdaq weaker yesterday. the dow pard losses from well over 100 points, down 44 now but the nasdaq continues to be weak after dropping 55 points yesterday in a, when the dow was actually up. >> looking at the nasdaq for the four, five days before, a lot of, new highs every day for three, four days in a row. >> something happened late yesterday in yields. did you see that >> yields basis points, dropped by about ten. >> italy or something? >> yeah. look there. >> almost at 3% yesterday. >> more questions justify now, seen that? picking this other course. >> i'm going with justify. >> picking hoffberg or something? >> larry started that. >> i always wanted triple crown to happen and -- >> and mean soros, a secret --

did he tell you personally he owned that is that how you got that story or did you see it recently you talk a lot. >> i read it in the "new york times. >> yeah. they know what he's doing. they're at the same headlines. >> go to the headlines. new, former ericsson ceo hans vestberg will take over for lowell mcadams at verizon. mcadams remaining executive chairman until the end of the year vestberg is the chief technology officer. there's a picture of him later don't miss jim cramer's interview with oco of verizon. catch it tonight on "mad money" and hear a lot more about it. and sharing of apple falling in japan apple's orders for new iphone parts may fall 20% for the first half of 2018 compared to the same period last year. apple is being extremely conservative the parts would be, for new phones introduced later in the

year right now the stock is down by 1.1% earlier down by 2.1% already bouncing back off the lows. trade front and center today. president trump meeting with the targets of his steel and alum numb tariffs at the g7 tariff in canada kayla tausche is there and joins us from quebec good morning. >> reporter: good morning, andrew the president is expected to depart momentarily for a truncated 24 hours at the g7 summit, which he tweets this morning will mostly center on the longtime unfair trade practiced against the united states noting that from there he will go on to meet with north korea's leader in singapore. tensions have been building because of those trade decisions made by the president to impose steel and aluminum tariffs a week and and launch an investigation into potential tariffs on autos add that to the fact the u.s. continued to discount the role of the world trade organization in global trade and the fact that in the last year the

president has withdrawn from both the paris climate accord and the iran deal. because of all of those decisions, many allies are bracing themselves for a potential joint communique at the end of this summit that excludes the united states take a look at this tweet from france's president im emmanuel macron we don't mind signing a six-country agreement if need be, representing an economic market with the weight of history behind it and now a true international force. here in quebec city, the national assembly is closed. many public buildings are closed as there have been protests throughout the city. that's typical for multilateral summits like this. some were outside the press filing center where i am right now last night there are expected to be more today. while these are commonplace, what is very rare is to see the group of six allies besides the united states putting forth a united front on the other side of the negotiating table guys, back to you.

>> thank you, kayla. we're going to be talking about this and seeing a lot more from you today and throughout the weekend, and then tomorrow and -- monday. president trump appealing to republicans to back off trade legislation put forward by senators bob corcoran and heidi heitkamp north dakota senator heidi height kavtkamp joins us this m. >> good morning. >> good morning. your take how this will all go down tomorrow? >> well, i mean, i think that we have a pretty good idea that there's going to be some tough conversations. the president obviously has signaled he's not going to back down in fact, he's going to continue to add things to the list, which i think is -- is a big bite to chew, and i think that there is not going to be any kind of meeting of the minds on whose advantaged or disadvantaged by the current trade stipulations and state trade relationships, trade agreements

i think our problem is a little bigger than that here in congress the question is, what role should congress play, and i think that this is a very small measure that advancing saying, look if you're going to assert national security concerns, we ought to have a role in that you shouldn't be able to unilaterally impose tariffs without some kind of congressional oversight and approval in a very narrow focus with 232 we're basically saying, let's sit down and talk about how we should structure these kinds of impositions, especially when they're being imposed against our allies. >> senator, you're in aly comple and position, because there are certain issues like this one, where you're not with the president, yet there are others where you are, and as you know with this particular administration, it feels like you're either with him or you're against him. how does that play into your thinking >> well, you know, i don't think

about political ramifications as much as i think about, you know, i have this period of time in the united states senate my one job is to represent the people of my state you know, it's interesting, because people always say, well, you're really concerned about the retaliation of what's going to happen with soybeans or corn or ethanol, and that's true, i am, but we are the ninth most dependent state on steel imports, and we do a lot of business with canada obviously, they're our neighbors. i met yesterday with the premier of saskatchewan and was with the ambassador of mexico we do a lot of business in mexico so one of the things i've been trying to do, andrew, just maintain relationships, but i think that this legislation goes beyond just kind of trade policy it goes to that, who should be doing what and we had a bad example with smoot/hawley of why you can't trust the congress we may now have to recorrect years later and say, maybe it's time we have a more bilateral

relationship with trade tariffs. >> what did you make of how this zte situation was ultimately handled yesterday? >> well, i think, you know -- i guess the proof point that everybody should look at is when you can get tom cotton and chuck schumer on a reaction bill within one day, everybody should take pause i think the concern with zte is not so much trade. it is national security and i think people who sit behind the closed door in intel know more than what i do about the threat that that organization and really the chinese government presents and i'm glad that they're taking the lead in advancing that discussion here also on capitol hill >> i want to read you a line from today's in t"new york time- the raging war between protectionists and free traders in the trump white house should farmers have an outsized influence in this debate >> you know what i think, yes

number one, we're value creators for country. everybody talks about what we do, but take a look what we do in terms of helping balance the trade deficit. take a look at what we do in creating wealth. so i'm proud of the position farmers have but i also -- you have to look at the political reality we all, you say you dance with the ones who got you there we're all america, had a huge part in getting donald trump a seat in the white house, in the oval office, and i think he appreciates that, and understands that i also think that thebusiness community understands it and there's been a lot of talk and discussion between the business community and agriculture commodity groups and farmers about how together they can formulate a voice for bringing, i think, a broader table to the trade discussion. >> senator, you haven't heard from me. i can see you're wondering what's happening, why -- so

we're probably going to let you go here, but it wouldn't be -- i mean, you'd be disappointed, right? if i didn't -- >> i want to tell you, i wore red just for you, because this is the first and maybe only time in washington, d.c. that the town will be painted red, joe. >> yep you know what? i think it's nice. i think it's nice. it's good. >> let me tell you, there isn't anyone in washington, d.c. today who doesn't have a little red on and if they don't, they get, like, mean looks. >> a lot of disappointment, all coming and they're going to hoist that cup that's going -- no just going to let you know that -- season four, "fargo" next year, 2019. i think it's going to happen >> get on it a bigger deal than "game of thrones," joe? bigger deal? >> for "fargo. >> ever consulted with the dialect coach for that show? huh? >> no. no, but, you know -- maybe i'll be available later on. >> okay. >> sometime, in a couple years. >> real good real good.

okay thank you, senator. >> take care. >> all right when we come back, a different slice of the trade pain this time talking pork jane wells is live at the world pork expo in des moines, iowa. the industry's biggest event oh, jane what do you have coming up for the tease? >> reporter: in the pork industry over a quarter is exports and 40% is mexico and canada this is the problem right now. we'll explain when we come back.

barracken news caught up in the trade turmoil. jane wells join us from des moines, iowa the industry's biggest event is and she has products with her. >> reporter: i do. most of the pigs in this barn are show pigs for breeding not the production hogs for eating, although i'm afraid i have news for this guy the story about the pork industry exports were at record highs last year in terms of volume making up for 25% of the u.s. industry mexico is the problem. mexico, number one international buyer by volume. two by value shift a billion and a half worth

of pork south of the border and now tariffs jumped to 20% next month. so here at the pork expo, people are also saying this is happening at the same time that production -- too much supply. production is at record levels which means if foreign demand dips, cheaper bacon prices for you, and national pork producer council is trying to stay optimistic are you mad at the president >> no. really, when it comes down to it, we just like what we've had before we've had free access trade since japan in 1989, opened up nafta. those markets have grown long as we get the markets back we'll stand here with but make sure we not only get our markets back but grow and have nmore fre trade agreements. >> reporter: and since it began with chinese tariffs, right behind mexico next important

pork buyer canada fourth. are they next? and farm incomes this year drop to their lowest level in more than a decade since even before the recession. come on, guys. it's just shoe laces leave them alone back to you. >> the dark pig behind you, his tail is wagging just like a dog's. >> reporter: i know. he's a big boy -- or girl. i can't see from up here. >> wow >> jane, do you feel a dog-like consciousness with those pigs? i say that just -- you know, they're like dogs. i don't see it, though i don't know. >> you choose not to, because you like bacon. >> reporter: no. they're really, arrest smareallt i double knotted these laces two or three times and they're getting it out >> they're not just -- going to untie jane's shoe laces. okay. >> reporter: yeah. yeah yeah well, he's lost his you know

what and is not as angry as he used to be. >> people that have pigs as pets are they house broken, do you know do they go out -- go to the door when they need to go outside do you know that >> reporter: i have no idea. i have a dog look at all -- well, what -- look at all this saw dust. it's here for a reason these pigs do not -- >> so they're not like dogs. pot pelly pigs are they house broken? do you know? >> i've seen them on leashes being walked maybe you walk them for -- >> reporter: i have no idea. i have no idea i just eat bacon i don't raise it. >> you can't say that while you're standing there. >> reporter: i do. oh, i do >> they're going to get angry with you very quickly. >> reporter: so, guys. >> okay. there you go. >> reporter: sorry >> thank you, jane jane wells. >> always great to see jane. when we come back in the next half hour, what the ceos of

at&t, gap and hershey have in common all signing on to a ceo action pledge the u.s. chair of pwc is here with the details it's fascinating stuff. first, wall street gone fishing. and steve liesman at a marina in new jersey city. look, i mean, is this considered work for you, steve? come on. >> okay. it is absolutely work, joe i am here -- and andrew. here on the banks of the hudson river about to fish in the 18th annual fishing conservation cup. helping out the fishery, help out the environment, and also help out wounded veterans. we're going to tell you all about the effort when we come back on the other side of the break. for the past 15 years, chubb has identified ways that we can strengthen our safety measures. and today, our hospitals have some of the best patient safety records in the country.

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wall street is going fishing today for a good cause steve liesman joins us now from across the hudson at a marina in jersey city. i have deja vu this happens occasionally, steve? >> every year, joe an effort to raise awareness for the amazing fishery in the hudson river most people don't believe it, but there's 40, 50-pound fish swimming up the hodson spawning, hopefully coming back down frank, what's going on out there on the hudson river? >> every day wall streeters

traverse this waterway on ferries and have no idea, steve, what's living right below the wate water,thriving vital fishery used as force for good we have a bunch of returning vets. >> first of all, say hello to astronaut bruce. fishing a long time. >> thank you, steve. since a young kid and great to come up here, support the effort and fished with frank quite a few times great to give this world perspective on this great fishery up here in new york. >>frank, you were moved by the idea saw a documentary. 22 veterans committing suicide every day. you're bringing 22 veterans fishing. >> yes. >> i want to talk to the staff sergeant here, involved to taking this all around the country. why does that help returning veterans >> the project, we use fishing as a cognitive and behavioral therapy. getting them out, meeting new

people and new opportunities to live their life the they way deserve. >> you're with a fixed income bucket over there, not bucket. [ laughter ] >> yes, kgs alpha. >> soon to be bmo. >> what can wall street do to help the environment out here? >> well, we've been coming tout support frank and all of his volunteers since its inception, really, both this tournament and the red bone tournaments as well. >> 18 years? 18th annual? >> yes, here since the beginning supporting the sca and more importantly guys with wounded warriors. >> what do people tell you when you tell them you went fishing along the hudson river and new york harbor. >> amazing how many millions are right there and have no idea of quality of the fishery that's right in front of them the size of the striped bass, bluefish, and very little boat traffic, you know. >> amazing except for the ferries. >> guys, talking in the last hour about the ability to bring

back environment and habitats. this is a real success story and what's going on, effort to take the games won and keep them in place and further them people say to me, what are you camping fish with, two heads no catching healthy striped bass going up the river to spawn amazing and the effort bound together with an effort to help the wounded warriors is amazing. joe? >> yes it's really good really good, steve i'm fully behind you on this one. and your ears, if they're burning. >> i know you are. >> your ears were burning earlier. yes, we were talking about you we had one of the guys from the atlanta fed here tom fanning. >> i heard that, too i heard that, too. 3.7, that's the c nnbc rapeid upgrade. doing it to make everybody live

better. >> and someone on to speak russian. we don't across the hudson, but he'll be back becky still contends you weren't born and raised there. you just went over there and learned. >> no. he was the moscow bureau chief for the "wall street journal" there. >> he's uri. he's uri >> my kids think the series "the americans" is about us. >> it is all right. thanks, steve. >> because at the dining room table when we were talking, one of the kids started saying we speak in russian, but it's not necessarily about us far as i can know. it's not biographical. >> we've been spelling things around our dogs lately. >> because they figured out some words? >> deer. if you say deer they go nuts. >> get on to you. >> now we spell deer and say d, that's enough. d-e -- >> start talking in pig latin. >> by the way, update on pigs. our friend porter has two pigs,

that sleep at the foot of his bed and in 11 years have only had one -- only two accidents in 11 years that's better than my record, i think, in the bathroom yeah. >> you got to rethink bacon. seriously. >> i'm rethinking bacon. soon as i leave here i'm going to be thinking -- >> no, no, no, no. >> when we come back we'll talk to the u.s. chair of pwc about what he's hearing from ceos around the country as we head to break a look at u.s. equity futures. improved quite a bit on the dow at least now down just 29 with your golf. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99.

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♪ good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square around mong the stories front and center on this friday, celebrity chef anthony bourdain, host of cnn's "parts unknown" died at the age of 61.

cnn says in a statement bourdain committed suicide found inside a hotel room in france working on an upcoming episode of the show. also, walmart is suing a former executive to keep them from joining amazon. the retailer's chief tax officer. walmart says the move to amazon violates a non-compete agreement. she was hired to be vice president of tax policy. and an anti-brexit group launched a campaign for a second referendum on britain's ex-ette from the european union backed by millionaire george soros and pushing lawmakers to hold a vote once teresa may passes the deal. separately, verify rising announ -- verizon anouns a new ceo we sat down with tim armstrong and asked about the change. >> impact is great it's really about 5g and verizon

has been a leader in 1g to 4g. 5g is where the world is going stepping up and hans as ceo tells you how serious we are about 5g and building out the next layer for everyone. >> watch the full interview with jim cramer on "mad money" tonight. of course, one of the big questions is about the future of verizon and whether this is really about 5g or a company that needs to do the kind of are thing at&t is trying to do, find out if they're allowed to do it with time warner ne eer next wek the content world and whether tim would play a role on that side if that's what they were to do. >> before we go. get to this. i think we're going togo to th president. president trump is taking some questions before he heads to -- heads to canada. >> -- he's a very dishonest man.

i've been saying it for a long time i think i did our country a great favor, a really great favor when i fired him, and we'll see what happens we'll see what the report says, but i guess it just got announced. it's coming out on june 14th so that will be, maybe, a nice birthday present who knows. >> are you -- [ inaudible ]. >> we're going to deal with the unfair trade practices if you look at what canada and mexico, the european union, all of them have been doing to us for many, many decades, we have to change it, and they understand it's going to happen. >> what are you going to do -- [ inaudible ]. >> we are going to do very well. now, if we're unable to make a deal, we'll terminate nafta. we'll have a better deal if we are unable to make a deal, we will be better off. right now we are not going to live with the deals the way they

are. european union treats us haven't unfairly canada, very unfairly. mexico, very unfairly. with that being said, i think we'll probably very easily make a deal go ahead >> were you serious about really not [ inaudible ] in the summit -- >> no. i didn't say that. i said i've been preparing all my life. i always believe in preparation. but i've been preparing all my life you know, these one-week preparations, they don't work. just ask hillary what happened to her in the debates. so -- i've been preparing for this all my life and, frankly, it's really just the fake news, because if you run, peter, just a little longer, the clip, you would see i've really been preparing all my life. i said that, but the news doesn't pick that up because it's -- fake news. >> [ inaudible ]. >> it's very interesting that they caught a leaker and a very important -- it's a very important leaker so it's very interesting

i'm getting information on it now. happened last night. it could be a terrific thing i know, i believe strongly in freedom of the press i'm a big, big believer in freedom of the press, but i'm also a believer in classified information. has to remain classified, and that includes comey and his band of thieves who leaked classified information all over the place so i'm a very big believer in freedom of the press, but i'm also a believer that you cannot leak classified information. >> do you have a reaction for [ inaudible ]. >> yeah. i think it's very sad. in fact, i want to extend to his family my heartfelt condolences. that was very shocking when i woke up this morning anthony bourdain is dead and i enjoyed his show he was quite a character i will say but so i just want to extend my condolences and, also, to the

family of kate spade >> [ inaudible ]. >> what's that >> [ inaudible ]. >> maybe you could call it anything you want it doesn't matter. it doesn't matter what you call it it used to be the g8 because russia was in it, and now russia's not in it now -- i love our country. i have been russia's worst nightmare. if hillary got in, i think putin is probably going, man, i wish hillary won, because you see what i do, but with that being said, russia should be in this meeting. why are we having a meeting without russia being in the meeting? and i would recommend and it's up to them, but russia should be in the meeting should be a part of it you know, whether you like it or not, and it may not be politically correct, but we have a world to run, and in the g7, which used to be the g8, they

threw russia out they should let russia come back in because we should have russia at the negotiating table. >> seriously, don't you -- [ inaudible ] -- >> say it? what >> [ inaudible ] >> i may leave a little earlier. depends on the timing, but i may leave a little early depends what happens here. look, all of these countries have been taking advantage of the united states on trade you saw where canada charges our dairy farmers 270% tariffs we don't charge them, or if we do, it's like, a tiny percentage so we have to -- we have to straighten it out. we have -- we have massive trade deficits with almost every country. we will straighten that out. and -- and i'll tell you what. it's what i do it won't even be hard. and in the end we'll all get along, but they understand and you know, they're trying to

act like, well, we fought with you in the wars -- they don't mention the fact that they have trade barriers against our farmers. they don't mention the facttha they're charging almost 300% tariffs. when it all straightens all we'll all be in love again >> [ inaudible ]. >> there will be more pardons. i thought alice yesterday was beautiful. i thought jack johnson which was recommended by sylvester stallone and some great boxers, i thought jack johnson was a great one. i'm thinking about somebody that you all know very well, and he went through a lot, and he wasn't very popular then -- and he wasn't very popular -- no, i'm not thinking about o.j only you can say o.j but he's -- he was -- look he was not very popular then he certainly, his memory, is very popular now i'm thinking about muhammad ali.

i'm thinking about that very seriously. and some others, and some folks that have sentences, but i am thinking about muhammad ali. >> what would it take for you to -- >> we're doing right now recommendations on -- frankly, we're going recommendations on muhammadally say it, peter? what >> [ inaudible ]. >> no, no. no i'm not above the law. i never want anybody to be above the law, but the pardons are a very positive thing for the president. i think you see the way i'm using them and, yes, i do have an absolute right to pardon myself, buttite never have to do it, because i didn't do anything wrong and everybody knows it there's been no collusion. there's been no obstruction. it's all a made up fantasy it's a witch-hunt. no collusion no obstruction, no nothing now, the democrats have had massive collusion, massive

obstruction and they should be investigated we'll see what's happening yeah i haven't even -- i haven't even thought about it i haven't even thought -- i haven't thought about any of it. it certainly is far too early to be thinking about that. >> mr. president -- >> they haven't been convicted of anything. there's nothing to pardon. it's far too early to be -- it is far too early to be thinking about it. >> will the [ inaudible ] -- say enough [ inaudible ]. >> scott pruitt is doing a great job within the walls of the epa. i mean, we're setting records. outside he's being attacked very viciously by the press and i'm not saying that he's blameless, but we'll see what happens >> it's an embarrassment [ inaudible ] -- >> that's what i want to do. we have 3,000 names. we're looking at them. of the 3,000 names, many of those names really have been treated unfairly you know, this is a group of

3,000 that we've assembled, and i would get more thrill out of pardoning people that nobody knows, like alice yesterday. i thought kim kardashian was great. because she brought alice to my attention. alice was so great, and -- the way she left that jail and the tears and the love that she has with her family, i mean, to me, that was better than any celebrity that i could pardon. so we're looking at it but we are looking at literally thousands of names of people that have come to our attention that have been treated unfairly, or where they're sentence is far too long >> [ inaudible ] -- >> i didn't invite him no i didn't invite lebron james, and i didn't invite steph curry. we're not going to invite either team, but we have other teams that are coming. you know, if you look, we had alabama, national champion he had clemson, national

champion we had the new england patriots. we have the pittsburgh penguins last year. i think we'll have the caps. i mean, we'll see. you know my attitude, they want to be here, the greatest place on earth, i'm here if they don't want to be here, i don't want them. >> [ inaudible ] -- >> i think if you look at what paul ryan is saying, it didn't come out that way. the fact is, they had people in our campaign they had people doing things that have never been done in the history of this country and it really is a disgrace, and, frankly, that stuff is just starting to come out >> [ inaudible ] >> fire who? >> [ inaudible ]. >> we'll see what happens. we'll see what happens. >> what do you think about [ inaudible ] -- >> mitt romney said what >> mitt romney said you're going to find it easy to win again.

>> we're doing well. mitt's a freight shooter whether people love him or don't love him, mitt romney is a straight shooter and, yeah, he had very nice things to say. i appreciate that. that's good. >> [ inaudible ] >> i love canada, but they treat us very unfairly on trade. very, very unfairly. you see the numbers. almost 300% on dairy so they treat us very unfairly are you guys all going you better get going, peter. we'll leave without you. >> [ inaudible ] >> i would only do a deal if i get through congress i wouldn't do like obama did and fortunately, he wasn't able to get it through. you know, he tried to get it through. the iran deal. he tried to get it through congress failed so he just did it without. which is why i was able to break it up so easy. and iran is now a different country. they're not looking to the mediterranean anymore.

iran is now a much different country. since i did -- since i signed that out, iran is a much different country. >> do you support -- [ inaudible ] -- >> i really do i support senator gardner. i know exactly what he's doing we're looking at it, but i probably will end up supporting that, yes. >> [ inaudible ] >> first lady is great right there! she has to -- and she wanted to go can't fly for one month. the doctors say. she had a big operation. that was a -- close to a four-hour operation, and she's doing great. right there. and you know what? she is a great first lady. >> [ inaudible ] >> terrible. that's -- we'll be talking to him, but that's terrible okay any other questions? >> [ inaudible ]

>> was one of my lawyers -- incredible that you can break into a lawyer's office that's one thing i can say and i think that was unfortunate. that they broke in to a lawyer's office not a good practice. >> [ inaudible ] >> well, the democrats, this is a democrat bill. the democrats can end that very quickly. all they have to do is ted dosin with us and negotiate a real bill allowing us to keep criminals out of this country. it's very easy schumer is a guy, he complains but he doesn't do anything schumer is a guy who is an obstructer he can't do anything all he can do is obstruct. all they have to do is call us and we'll draw a bill that gives great border safety and security and is fair, because i don't like these children being separated from the parents i don't like it. i hate it, but that's a democrat bill that we're enforcing. we can change it in one day, all

they have to do is come and see us >> [ inaudible ] >> i -- i can't hear your question too much competition go ahead no you're not prepared. i can't believe she's not prepared see? they're shocked. right? we'll bring it up. yeah we'll bring it up. >> [ inaudible ] >> i have work i have about -- 15 boxes of work i will be able to work without being bothered by phone calls where you people are writing fake stories about me and we have to respond. now, seriously i mean, i have a lot of work that's on the plane. so, have a good day. >> are you worried about all the things rudy is saying -- >> look, rudesy great. rudy's rudy but rudesy doing a very good job, actually. doing a very good -- >> [ inaudible ]. >> he said what? >> [ inaudible ]

>> i'm not going to disagree with him on that >> [ inaudible ] >> i can't hear a word he's saying. >> [ inaudible ] >> no. he wasn't. but i like dennis. a great rebounder. dennis was a great rebounder and wasn't relatively speaking that tall that tells you, there's a rebounding, there's a genius for that dennis rodman was a great rebounder. one thing we are thinking about, speaking of sports stars the power to pardon is a beautiful thing. you've got to get it right you've got to get the right people i am looking at muhammad ali but those are the famous people. and in one way, it's easier and people find it fascinating, but i want to do people that are unfairly treated, like an alice, where she comes out and -- something beautiful. what i am thinking to do -- you

have a lot of people in the nfl in particular, but in sports leagues. they're not proud enough to stand for our national anthem. i don't like that. what i'm going to do is, i'm going to say to them, instead of talk, it's all talk, talk, talk. we have a great country. you should stand for our national anthem. you couldnshouldn't go in a locr room from our national anthem is played i'm going to ask all of those people to recommend to me, because that's what they're pro testing, people that they think were unfairly treated by the justice system and i understand that. and i'm going to ask them to recommend to me people that were unfairly treated friends of theirs or people that they know about, and i'm going to take a look at those applications, and if i find, and my committee finds, that they're unfairly treated, then we will pardon them, or at least let them out >> [ inaudible ]

>> you know, i don't have to do that i'm not looking to grandstand. we got enough grandstanders in this town. i'm just saying for the leagues, if they have people, if the players, if the athletes, have friends of theirs, who are people that they know about that have been unfairly treated by the system, let me know. >> [ inaudible ] >> well, you know, if you think about it, that's really -- that becomes celebrity advocates. but they know a lot of things we're not going to go. they've seen a lot of abuse and seen a lot of unfairness so if they have, how do you like that idea, david >> [ inaudible ] >> oh no i have the absolute right. i don't have to do it. never did anything wrong you know that better than anybody. >> you can -- [ inaudible ] -- >> i think you have a double edge reporters can't leak -- you cannot leak classified information.

at the same time, we need freedom of the press but you cannot leak. like hillary clinton did like comey did you cannot leak classified information. if you look at the young sailor, saucier, i mean, he went to jail over not classified, a much lower level and it's very unfair that he goes to jail and that comey's allowed to do it all over very unfair. thank you much i'll see you in canada okay that was moments ago kind of felt live. we need two cameras though. >> yeah. i want to see the questions being asked. you couldn't hear them. >> a lot of news media there, just ten minutes perhaps the biggest, issue of the g8 and g7, the idea of bring russia back into it. >> a lot of my twitter people said that's going to trigger a lot of people -- how's your weekend going to be? you all right? >> my weekend's going to be fine. >> okay. >> i think a lot of conversations about what this

means over the weekend and in canada, though. >> after the whole ovechkin thing, too and now this. anyway, get to kayla tausche live in quebec city. that was something, kayla. too bad you're something too bad you're in candy when it - canada what that's happening. >> we'll be on the receiving end when the president gets here the summit is about 90 miles north of where the press is camped out in quebec city. you saw a fired up and energized president trump on his way to first, the g7 summit and then the north korean summit. he sidestepped the press for the last several weeks stopping, as you saw, for nearly 20 minutes to take questions he did make some news about this g 6 plus one dynamic referencing russia, as you mentioned, which was expelled from the g8 in 2014 for the annexation of crimea

it will be interesting to see how the other six countries interpret that remark, which was fairly cryptic whether he was suggesting russia be invited back into the g7 which would be the g8 or whether there's precedent for the u.s. to bow out of it on nafta he said, again, as he said before, if we don't get a deal, he'll withdraw he said we'll make a deal easily that's a head scratcher that a lot of people will be watching he talked about north korea, the power to pardon, and a boat load of things. >> and the supreme court overturned muhammad ali's conviction. >> yeah. >> i don't understand. >> full pardon is different, i think. and then, also, that appeal to hear about, you know, in terms of prison reform to hear about

some of the individual stories of injustices of the system, and then consider them on a case-by-case basis that was a weird -- i don't know that sounds like it hasn't been vetted that much i don't know. >> and an olive branch to the nfl players. if you know people that have been unfairly treated by the system, bring me their names. >> that does more than -- you know, maybe that's concrete action maybe that would appeal to some of those guys. i don't know. >> i'm starting a pardon poll on twitter. >> who gets pardoned next? >> yeah. >> okay. >> i think that's disparaging a whole idea no, i know. >> i bet you'll hear names like mielke those are all sorts of people that enter this world. >> charlie manson is dead. think he might -- >> i'm not putting them. >> but a pardon poll

mostly decent ideas or ridiculous ideas >> oh, no. >> people that might deserve it? >> yeah. >> it's well intended? >> yes, it is. >> not a big joke. >> kayla, thank you. joining us now on set is tim ryan the u.s. chairman of price water house coopers. thank you for being here. >> we have a lot to talk about you listened to that entire take maybe some of the biggest things jumping out the g8 being the top. putin and russia could be put into the mix any thoughts on of that out of the gate >> i think many respects we've seen in the business community for awhile is business leaders focus on what is happening in d.c. and to business and they're trying to figure out what is going on at the same time driving change in the business this is yet a little bit more uncertainty from their perspective. >> a big uncertainty for a lot of business leaders is happening with trade we heard the president come out in the comments and say we are really being treated unfairly. very unfairly, he said, by the

eu and canada and mexico i love canada but they treat us unfairly on trade. in the next breath he said "with that being said, i think we'll make a deal. think this is a big negotiation? >> look, we need global relationships. we have the privilege of meeting with hundreds of ceos every month. what we hear from them is, first of all, they love tax reform and regulatory reform. they think we need better trade deals. they said we need long-term global sustainable businesses. this is another step in building better trades. >> you are a head of a group called ceo action for diversity and inclusion. it's a big group more than 460 ceos involved. what is the focus? >> we came together a year ago and the two premises are ceos are a remarkable group when they put their mind to something and prioritize something, we can get

things done. and the second thing is the power of collaboration every company is in a different spot, we try to pull together ceos to say how do we pool our resources to do better we started out with 175 companies a year ago today we have 450 ceos it's our one-year anniversary. we're trying to make inclusivity, diversity a higher priority. >> you've made remarkable progress inside your own firm. one of the questions that you hear a lot about, we've talked about this, actually, off air. the idea that, frankly, someone who might be the classic or traditional sort of like a white male in their 40s and 50s. they've done all the things they think they're supposed to do to move up to the next level. and they feel it's almost like a reverse situation. how do you explain that to both sides? >> so a great question you know, basically one of the reasons we're so focussed on

diversity and inclusion to make it sustainable part of the way to make it sustainable is have open and honest conversations what we talked about off air we talk to our people we talk to our white men, in many cases, they get it mentally but wonder about what is the role for us. how do we make sure we progress as well. the first step is creating a safe corporate work environment to talk about the issues to make it sustainable moving forward. >> tim, thank you very much for being here. >> thank you and a programming note tonight on "mad money" don't miss jim cmerar's interview with tim armstrong of oath. 6:00 p.m. eastern time

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final check on the markets on this friday morning as president trump just making a number of headlines on his way to canada for the g7 talking about how he believes it should be the g8 and russia should be part of it creating quite a debate on that. dow looks like it will open down about 46 points. nasdaq up about 43 points.

s&p 500 off about 5 points also, the ten-year note as we flip the board around. ten-year about 2.935 and the bigger news next tuesday we'll be live here at 5:00 a.m. in the morning guys, thanks. >> have a great weekend. join us on monday. "squawk on the street" begins now. ♪ good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber the president arrives in canada soon how well the tweets affect trade policies in the months will come we'll have full coverage all day. europe is relatively mixed our road map